Future Growth Potential of North American Heating, Ventilation, and Air Conditioning
Growth strategies will center on connected solutions for energy optimization and enhanced occupant comfort inside the built environment
The COVID-19 pandemic impact on the North American HVAC market was relatively muted than expected. While the market was forecast to slump by 6% in 2020, the post-Q2 2020 rebound helped HVAC manufacturers get their business back on track. Amid the government change in the United States and the adoption of favorable climate change regulations and protocols, the market is expected to leverage the need for better indoor air quality and attaining net-zero energy targets.
The North American HVAC systems market was $24.09 billion in 2020 and is forecast to record a 6.3% CAGR over the next seven years to 2027. The demand for air conditioning equipment in the southern region of the United States and parts of Canada, which experience heat waves every year, will propel cooling equipment sales. Leading manufacturers’ focus on megatrends such as digitization and urbanization, increasing disposable incomes, and climate change will lead to technologically advanced solutions that cater to different customer segments.
The competitive success factors in the region include brand reputation, product quality and cost, knowledge support lent by installers or building managers, and ease of installation and use. The dwindling number of qualified HVAC personal is a cause for concern in the HVAC equipment market. There are also insufficient certified professionals on new technologies emerging in the HVAC market. Hesitancy remains in the commercial buildings replacement market as owners or facility managers prefer a like-to-like replacement rather than upgrading their systems.
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